Taxes on real estate in Italy. What we pay for when buying houses and apartments in Italy.
One-time taxes and expenses for the purchase of housing.
VAT on real estate in Italy is the main tax and is from 10% of the price of the new facility to 20% for real estate in the category & laquo; luxury & raquo ;. These VAT rates apply only to the primary market. In the secondary market, VAT is no longer charged. In this case, the resident of Italy, even if he is a foreigner, buying his first real estate property pays a reduced rate of 4% of the estimated value of housing. Thus, before buying a home, it makes sense to issue a temporary residence permit in Italy, which will help you significantly reduce tax deductions for purchase.
Registration tax (Imposta di Registro)
In Italy it is 168 �; for primary real estate and 7% of the tax value of the object – for secondary (for residents – 4%, for non-residents – 7%). At the same time for tax on the purchase of secondary real estate tax deductions are applied, namely, a reduction of 900 & euro; The tax for each 100 000 cost of object. Thus, if you purchase a property worth 500,000 �; as your summer residence or just a second home, then pay for 4500 �; less for the registration of the object. In this case, if you get the status of a resident, before buying, the tax will be only 3% of the price of the property.
Mortgage and cadastral fees (Imposta Ipotecaria e Catastale)
For the primary real estate – 336 & euro; both taxes (for 168 euros for each). Mortgage and cadastral property tax in Italy for non-residents for secondary housing is 2% and 1% of the cost (for residents – 336 � for two taxes). Tax on the purchase of land for construction – 8%. Agricultural land is not sold to foreigners, but if you are a resident, then the tax on the purchase of such land is 15%. The land under construction is absolutely justified to buy on your enterprise in Italy, and not on yourself personally.
Regular taxes after buying a home.
The calculation of the value of most property taxes in Italy is based on the cadastral, rather than on the purchase value of the property. The cadastral value is almost always lower than the real value. The exception is the primary real estate purchased from the developer. In this case, the cadastral value will be equal to the purchase price.
IMU (Imposta Municipale Unica) or municipal property tax.
From the IMU tax in 2015, the owners of real estate are exempted, enjoying the privilege of buying the first housing, which is the main residence.
TASI (Tassa sui Servizi Indivisibili)
Municipal utility tax: lighting costs, maintenance of green spaces, cleaning of streets and other services. This tax is calculated from all citizens living in the administrative unit of the country. Unlike IMU, TASI, it is paid by all owners or tenants of real estate without exception.
TARI – tax on the export of garbage. All owners or tenants of real estate pay taxes, the tax also does not depend on the cadastral value, benefits do not apply. The IMU and TASI calculations are based on the cadastral value of the real estate multiplied by the corresponding interest rate established by each commune. These taxes are paid in two installments, in June and in November this year. TARI is calculated based on the area of real estate, time of use and the number of people living. It is paid once a year. These three taxes are combined into one fee called IUC (Imposta UnicaCommunale).
Details on obtaining residence permit, permanent residence and citizenship in different countries of the world you can see here:
The central office in Slovenia.
Slovenia Ljubljana Vosnjakova 1.
Tel: +386 64 233 000.
Tel: +386 64 177 151.
Opening hours: Mon-Fri 8:00 – 16:00 (Slovenian time GMT + 1)